Agenda. Philip Tracy, Chairman. Manager Shareholder Relations. Questions. Page 2

Transcription

1 Welcome March 2015

2 Agenda Overview Market and business update Philip Tracy, Chairman Gary Helou, Managing Director Capital structure update Questions Robert Poole, Executive General Manager Shareholder Relations Page 2

3 Philip Tracy Chairman Overview Page 3

4 Outline Half year review Milk pricing Looking ahead Proposed capital structure Page 4

5 Half year review Held $6 kilogram milk solids farmgate price International dairy ingredients prices showing some recovery since January, after 50% fall in first half Investing for future growth Devondale Dairy Beverages Centres operating to plan Capacity and capability building in existing sites across cheese, butter, powders and dairy beverages Program Evolution critical strategy enabler Board matters B&C Class voluntary buyback ($34.9 million) Director candidate assessment panel Consideration of decreasing the overall size of the Board Increase in Director fees Page 5

6 Looking ahead Excellent seasonal conditions (except dry in Western Region) Water catchments at good levels China demand/russian sanctions due to expire August New Zealand milk supply growth slowing Lower Australian dollar Feeling positive about 2015/16 Page 6

7 Status of capital structure proposal Feedback from suppliers at previous consultation sessions has been incorporated into the proposed structure The proposal is in the final considerations before the proposed EGM The proposal remains subject to formal regulatory review and approval Before you are asked to make any decisions, either about MG s structure or your own affairs, we will provide you with detailed explanatory materials to support your decision making (expected to be provided in mid April) Nothing we say today should be taken as advice, nor is it binding on MG in any way Page 7

8 Proposed capital structure timetable January 31 Share offtake suspended March Mid March Supplier/shareholder roadshows commence Late March New MG loans and credit policy mailed to MG shareholders April Mid April Notice of EGM mailed to shareholders Late April Final supplier information sessions commence (Victoria only) May 8 Proposed EGM to undertake the vote on the proposed capital structure Page 8

9 Extraordinary General Meeting In addition to the Capital Restructure Shareholders will be asked to vote on a number of items: Constitutional amendments The proposed constitutional amendments relate to the proposed capital structure and are conditional on the capital structure being implemented Amendments are essentially to allow for ease of administration of the new capital structure, for example ensuring that voting entitlements align to the Share Standard by amending the definition of the soft cap to be 1 voting share per kilogram of milk solids, rather than 1 voting share per 5 litres of milk In addition, the conversion of the B and C Class Preference Shares to non-voting Ordinary Shares will be considered Full detail will be contained in the Notice of Meeting Page 9

10 Extraordinary General Meeting (cont) Fees paid to non-executive directors (subject to Shareholder feedback) Subject to Shareholder feedback, a Director fee increase may be put forward at the EGM The Board commissioned EY to undertake a benchmarking review of MG s director fees against a comparator group of companies listed on the Australian Securities Exchange (ASX) This report recommends MG increase director fees to better align them with fee structures of ASX comparator group companies, particularly in light of the proposed capital structure Page 10

11 Proposed capital structure timetable January 31 Share offtake suspended March Mid March Supplier/shareholder roadshows commence Late March New MG loans and credit policy mailed to MG shareholders April Mid April Notice of EGM mailed to shareholders Late April Final supplier information sessions commence (Victoria only) May 8 May Proposed EGM to undertake the vote on the proposed capital structure Early May Subject to EGM SSO offer opens Late May SSO offer closes June/July Early June Product Disclosure Statement for the unit trust offer and Prospectus for the Supplier Priority Offer lodged Early July MG unit trust lists on the Australian Securities Exchange (ASX) Page 11

12 Gary Helou - Managing Director Market and business update Page 12

13 Outline Market update Business update Strategy Page 13

14 Market update Page 14

15 Global Dairy Trade Global Demand Global Supply Exchange Rates Underlying demand in China moderated. Stronger demand in MENA, Africa and SEA European cheese production easing due to Russian ban and replaced by more powders into alternate markets NZ forecast +0.2% due to dry conditions US forecast to be +2.1%, despite decline in California EU forecast to be +2%. Expect supply growth of +4% when quotas end in April 2015 Australia up 2.6% in first half of Australian dollar trading at ~77 cents providing some relief for exports during second half Source: Global Dairy Trade, Dairy Australia and MG Page 15

16 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Global key exporter supply growth is slowing 8.0% 6.0% 4.0% 2.0% 0.0% US EU NZ Aus Argentina Brazil GDT (RHS) 1,800 1,600 1,400 1,200 1, % -4.0% -6.0% % change in exporter supply Previous NZ drought, which also coincided with weak growth elsewhere due to weather and high feed costs Price index Source: GTIS, Macquarie Research, 4 March 2015 Page 16

17 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec NZ WMP exports to China down 77% in January 140, , ,000 80,000 60,000 40,000 20,000 NZ WMP exports to China (MT) -77% Demand appeared to be recovering in late % -52% -25% Source: GTIS, Macquarie Research, 4 March 2015 Page 17

18 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Demand is still soft '000 MT, rolling 12 months China and Russia combined represent around 20% of global dairy imports Chinese WMP demand (proxied byimports) fell significantly in 2HCY14 following an over import Russian cheese imports down significantly due to import bans for a number of trade partners in place since August 2014 China - WMP imports Russia - Cheese imports Source: GTIS, Macquarie Research,4 March 2015 Page 18

19 Business update Page 19

20 Goal Zero Workplace safety still a number 1 focus Significant progress has been made in our group safety performance but there is always more work to be done to reach Goal Zero H&S Frequency Rates June December % reduction in Total Recordable Injury Frequency Rate (TRIFR) 0 June 2013 Dec 2014 TRIFR (48% reduction) Page 20

21 Solid half year results for MG despite a significant decline in global dairy commodity prices in the first half Milk price $6.00 Kg/MS Milk pool * 2 billion litres Revenues* $1.3 billion Net profit* $12.9 million - 12% + 6.8% - 1% Other markets had farmgate price declines of up to 40% Growing ahead of national milk pool which is at +2.4% Delivered despite significant decline in commodity prices since 1 July 2014 Full year NPAT guidance $20-30m in line with last year * Financial year 2015 half year result numbers Page 21

22 Global commodity price comparison FY14 versus first half of FY15 Weighted Average Price (USD/MT, FAS) $5,500 $5,000 $5,011 $4,500 $4,000 $4,539-47% - 39% $4,407-25% $3,729 1st Half FY2014 1st Half FY2015 $3,500 $3,298-24% $3,000 $2,651 $2,765 $2,817 $2,500 $2,000 $1,500 WMP SMP Cheddar Butter Source: Global Dairy Trade Page 22

23 Providing consistently stronger farmgate prices and reducing business volatility for our dairy farmers is a key focus $7.50 $7.00 $6.50 $6.00 $5.50 $5.00 $4.50 $4.00 $3.50 $3.00 MG average weighted farmgate price $4.31 $5.25 $4.44 $4.23 $6.76 $4.79 $4.45 $5.64 Commodity price boom $5.44 $4.97 $6.81 $6.00* Average price ( ) Commodity price fall * 2015 is the forecast average weighted price published by MG as at 27 February 2015 Source: MG Page 23

24 2-Jul-08 2-Sep-08 4-Nov-08 6-Jan-09 3-Mar May-09 1-Jul-09 1-Sep-09 3-Nov-09 5-Jan-10 2-Mar-10 4-May-10 6-Jul-10 1-Sep-10 5-Oct-10 2-Nov-10 1-Dec-10 4-Jan-11 1-Feb-11 1-Mar-11 5-Apr-11 3-May-11 1-Jun-11 5-Jul-11 2-Aug-11 6-Sep-11 4-Oct-11 1-Nov-11 6-Dec-11 3-Jan-12 1-Feb-12 6-Mar-12 3-Apr-12 1-May-12 5-Jun-12 3-Jul-12 1-Aug-12 4-Sep-12 2-Oct-12 6-Nov-12 4-Dec-12 2-Jan-13 5-Feb-13 5-Mar-13 2-Apr-13 1-May-13 4-Jun-13 2-Jul-13 6-Aug-13 3-Sep-13 1-Oct-13 5-Nov-13 3-Dec-13 7-Jan-14 4-Feb-14 4-Mar-14 1-Apr-14 6-May-14 3-Jun Jul Aug Sep Oct Nov-14 2 Dec Jan Feb Mar-15 Outlook commodity price trends - WMP WMP price remained flat in latest auction following recent rally in January and February 2015 WHOLE MILK POWDER (2 July March 2015) Weighted Average Price (USD/MT, FAS) 6,000 5,000 MG Farm gate price $6.81/KgMS MG Farm gate price $6.00/KgMS 4,000 3,000 2,000 1,000 0 GFC and GDT impact Almost at GFC levels Average Price Source: Global Dairy Trade Page 24

25 Our strategy has allowed MG to hold farmgate prices well above commodity returns $6.90 Fonterra NZ (A$ equivalent) versus MG (A$) Milk Price 1 $9.00 $8.00 $7.00 A$7.68 A$ % A$ % A$6.09 $6.00 $5.00 A$4.62 A$6.81 $6.00 $4.00 A$4.34 $3.00 $2.00 $1.00 $0.00 Fonterra FY14 Fonterra FY15 MG FY14 MG FY15 Source: Fonterra published data and MG data 1. Fonterra FY14 Milk Price of NZ$8.40 and Dividend of NZ$0.10 per share converted at average FY14 AUD:NZD rate of Fonterra FY15F Milk Price of NZ$7.40 and Dividend of NZ$ $0.35 per share (NZ$0.30 assumed in chart) converted at average FY15 YTD AUD:NZD rate of Note average exchange rates are based on 30 June year ends (in line with MG s year end), while Fonterra s Milk Prices and Dividends are on a July year end basis. MG has not declared a dividend in FY15 so the value of the dividend is calculated as an estimate using the current ordinary share 8% yield. Page 25 Milk Price Dividend

26 Saleable product volume FY12 - FY15f MG s strategy of investing to increase diversification and product flexibility enables us to maximise milk price in a variety of market conditions Transitioning to producing a higher proportion of value-added dairy foods Examples of value-added dairy foods 100% 80% 60% 52% 66% 40% 20% 0% 48% FY12 Ingredients / Nutritionals 34% FY15f Dairy Foods MG s exposure to commodity prices is declining Page 26

27 Since 2012 we have delivered over $100 million (annualised) in operational excellence and market premiums Additional projects are in progress to deliver further operational excellence: Program Evolution Consumer cheese UHT upgrade Page 27

28 Strategy Page 28

29 Our vision and strategy *In order to measure an increase in underlying milk price, rather than use the available milk price paid to suppliers each year, an implied milk price is used which is based on forecasted available milk price from FY12 plus the value of annual dividends. The available milk price targets are normalised for the movements in dairy commodity prices, foreign exchange and impacts of inflation as well as other one off items such as opening inventory. Page 9

30 FY12 to FY15 strategic investment and business activities From FY12 to FY15 we have undertaken the following: Delivered significant annualised cost and efficiency savings Delivered state of the art daily pastuerised milk plants at Laverton and Erskine Park to support the 10 year landmark Coles agreement Commenced upgrading our capability in UHT, retail butter, cheese and nutritional powders but still a way to go Built TDP plant and increased shareholding to 76 per cent Increased shareholding in MG Qingdao to 100 per cent Safety related capital expenditure in our plants and fleet Secured gas supply for our Cobram and Leongatha plants Simplified the share structure through buy-back of A, B and C Class Preference Shares Page 30

31 Well on the way to deliver the target of up to $1.00 per kgms in underlying milk price FY17 target includes additional capital expenditure for continued manufacturing and infrastructure upgrades, UHT and Cheese as well as business as usual maintenance capital expenditure FY19 target includes additional capital expenditure for UHT, Cheese and Nutritionals as well as business as usual maintenance capital expenditure Page 31

32 Investment in dairy foods will drive growth and sustainably higher farmgate prices Ingredients Dairy foods Reasonable manufacturing asset base MG underinvested in dairy foods manufacturing asset base $500 million in new investment is required to be market relevant and profit sustainable

33 Wide range of products and formats Cheese Drinking milk and liquid milk products Butter and fats Nutritional products Milk powders

34 Substantial growth opportunities still remain Up to $500 million required to support growth strategy through investments in world class manufacturing capacity, market reach and supply chain efficiencies, to better serve customers and consumers in Australia and Asia Consumer Cheese Dairy Beverages Nutritional Powders Page 34

35 Emerging countries still underpin forecast growth Source: Rabobank, International Dairy Federation (2014) and International Dairy Federation (2013) Page 35

36 Million litres % Milk exported Milk intake (billion litres) MG has driven dairy growth in Australia Australian production has declined......and MG has successfully grown production 1 12,000 70% 10,000 8,000 6,480 4,943 4,022 3,891 3,603 3,686 3,383 60% 50% 40% ,000 30% 2 4,000 2,000 4,367 5,182 5,001 5,210 5,876 5,514 5,856 20% 10% FY00 FY05 FY10 FY11 FY12 FY13 FY14(p) 0% 0 FY10 FY11 FY12 FY13 FY14 FY15 (F) Domestic Exports % Exported Source: Dairy Australia Limited (2014) Note: 1. Devondale Murray Goulburn total annual milk intake (million litres) includes Tasmanian milk intake volumes from Tasmanian Dairy Products ( TDP ), a fully consolidated joint-venture company. Page 36

37 External drivers provide strong support for Australian milk growth Source: IRESS (February 2015) and AFGC analysis of UN Comtrade Database (2014) Page 37

38 Looking ahead the signs are positive We remain confident of the long-term underlying growth in demand for dairy foods, particularly in Asia, where there is a net reliability on imports to satisfy rising consumer demand for dairy foods Signs of gradual recovery in global ingredients prices Lower Australian dollar Capital structure for future growth Page 38

39 Robert Poole EGM Shareholder Relations Capital structure update Page 39

40 Important notice and disclaimer THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT, IS NOT INTENDED TO BE, AND SHALL NOT BE CONSTRUED AS, AN OFFER, INDUCEMENT, INVITATION, SOLICITATION, COMMITMENT OR ADVERTISEMENT WITH RESPECT TO THE PURCHASE, SUBSCRIPTION OR SALE OF ANY SECURITY AND NO PART OF IT SHALL FORM THE BASIS OF, OR BE RELIED UPON IN CONNECTION WITH, ANY CONTRACT OR COMMITMENT WHATSOEVER. This presentation has been prepared to provide summary information about Murray Goulburn Co-Operative Co. Limited ( Murray Goulburn ) and its business, including a potential restructure. The restructure being considered by Murray Goulburn remains subject to shareholder consultation, regulatory approval and further consideration by the Murray Goulburn board. This presentation does not create an obligation on Murray Goulburn to proceed with a restructure. If the Board determines to recommend a restructure to shareholders, that restructure will be subject to shareholder approval and the details of the restructure will be specified in an Explanatory Memorandum and other materials sent to shareholders. This presentation does not purport to be complete or to contain all of the information that a prospective investor may require in an investigation of the Murray Goulburn business. It is not intended as a substitute for your own analysis. You must make your own assessment of the relevance, accuracy and adequacy of the information in the presentation and make such independent investigation as you may consider necessary or appropriate for such purposes. Statements in this presentation are made only as at February This presentation is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or under any other law. This document has not been filed, registered or approved in any jurisdiction. By receiving this presentation, the recipient acknowledges and agrees that no representation or warranty is made as to the accuracy, reliability or completeness of any information contained or referred to in this presentation, or subsequently provided either orally or in writing to the recipient. In particular all opinions, estimates, forecasts and projections in this presentation have been prepared by Murray Goulburn for its own use (or in the case of demographic and similar forward looking information, obtained from public sources). They do not constitute, and should not be regarded as, a representation that the relevant results will actually be achieved or that the underlying assumptions are valid. All forward looking statements are subject to uncertainties and contingencies, all of which involve known and unknown risks and uncertainties, many of which are beyond the control of Murray Goulburn and which may cause actual results to differ from those described in this presentation. No forward looking statements in this presentation have been independently verified and no representation or warranty is made that any such statements will come to pass. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. No responsibility or liability is assumed by Murray Goulburn for updating any information in this presentation or to inform the recipient of any new or more accurate information or any errors or mis-descriptions of which Murray Goulburn or its advisers may become aware. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or to "US persons" (as defined in Regulation S under the US Securities Act of 1933, as amended (the Securities Act )) or elsewhere. No securities of Murray Goulburn have been, and nor will they be, registered under the US Securities Act. This presentation is for informational purposes only and is not financial product or investment advice or a recommendation to acquire securities of Murray Goulburn and does not take into consideration the investment objectives, financial situation or particular needs of any particular investor.

41 Agenda Recap on the proposed capital structure Proposed impact on supplier returns Update on key items from the recent letter Consideration of your personal shareholder information Forthcoming process and timelines

42 Recap What is the proposed capital structure? Suppliers retain 100% voting control of the co-op Only active suppliers can vote MG will raise up to $500m via listing a Unit Trust on the ASX MG shareholders will be able to buy more shares in the Co-op Dividend paid to external unit holders - same as the dividend paid to MG shareholders MG supplier share ownership will still be subject to the hard cap of 0.5%

43 Potential advantages to MG s suppliers/ shareholders A number of potential advantages for suppliers/shareholders are intended to be created: 1. Market value for shares 2. Can buy and sell shares (within the rules) 3. Increased balance sheet strength 4. Greater potential to create overall higher milk prices via Co-op investment in value adding capital expenditure (CAPEX) Current milk pool + dividends Invest in new value added projects New milk pool (including returns from CAPEX) Potential increased milk payments Increased dividends to shareholders and investors Page 43

44 The structure creates change and MG has identified the following risks Increased complexity of capital structure Volatility of share price Liquidity on the ASX required for trading on the Shareholder Trading Platform Failure to implement our business strategy and realise lift in FMP Retaining suppliers and attracting new suppliers Need to obtain regulatory consents Page 44

45 Total return per kg of milk solids How the new model works: Higher Milk Price = Higher Dividends Lower Milk Price = Lower Dividends $8.00 $7.50 $7.00 $6.50 $6.00 $5.50 $5.00 In low FMP years, matrix designed to support suppliers through higher allocation to milk payments $6.00 $6.50 $7.00 $7.50 Dividend outcomes aligned with milk payments Vast majority of milk pool paid to suppliers through milk payments $5.50 $4.50 $5.00 $4.00 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 Size of milk pool (A$m) FMP (AUD / kg MS) Dividend per share / unit (AUD) Note: This matrix is still to be finalised and is for illustrative purposes only Page 45

46 Future value of MG shares While the MG Board is still to finalise the Profit Sharing Mechanism, it currently expects that the aggregate dividend paid to shareholders and unitholders on the enlarged number of securities (shares and units) following the SSO and IPO will be maintained or will increase - except possibly in very low milk price years. Additionally, the Board will not proceed with the restructure, SSO and offer of units unless it is satisfied that on listing of the Unit Trust, the capital value of the shares (and units) will be at a premium to the $1.24 per share payable under the SSO and that the overall returns to shareholders is positive. Page 46

47 Total supplier payout per kgms + 1 share (AUD) Supplier returns pre and post structure Milk price + dividends + franking credit + CAPEX returns = Supplier Return Supplier return composition will change: 1. Share value will change from $1 per share to more than $1 per share 2. Co-operative will pay tax, so franking credits will be generated by MG 3. Return in the form of franked dividends 4. Majority of return from capital invested accrues to suppliers via milk price Supplier today New structure year 1 New structure plus capex Available FMP Returns from capex (per kgms) DPS Franking Note: Final splits between components of return will depend on the Profit Sharing Mechanism ( matrix ), valuation, funds available for the Milk Pool and future changes to the mix of shares and units. Supplier and investor dividends are represented above as equal on a per share / unit basis. Page 47

48 Suspending Share Offtake Share offtake has been suspended as at 31 January 2015 Required in order to lock down the number Shares on issue for calculating each supplier s share standard and the SSO and Priority offers Suppliers receive cash not shares while offtake is suspended from 1 February 30 June 2015 Page 45

49 Supplier Share Offer (SSO): Undershared suppliers can buy shares up to their Share Standard at $1.00 to $1.24 Voluntary But must commit to a 1, 2 or 3 year supply agreement depending on quantity of shares purchased Timing early May SSO documentation will include the: Profit sharing and dividend arrangements Details of the proposed CAPEX projects 40% 20% 60% 80% MG Today New Structure (Estimate) No. of suppliers Overshared Undershared Page 49

50 Supplier Priority Share Offer and Friends of MG Unit Offer Supplier Priority Share Offer Open to all shareholders Can buy additional shares in the co-op up to the Hard Cap (at IPO Price) Timing late May/June Friends of MG Unit Offer While the Board is still considering the final makeup of this Offer, buying units at the IPO price is expected to include the following: Current MG suppliers Former MG suppliers MG employees Local residents in our dairy regions Timing late May/June Page 50

51 Tax impact Tax impact of capital structure MG is seeking rulings from the Australian Taxation Office expected prior to SSO Objective is to ensure that shareholders will not incur a tax liability until they sell their shares under: The SSO Supplier Priority Offer, and IPO MG suppliers will receive franking credits with dividends going forward Page 51

52 MG farm finance and MG Trading credit terms MG is updating its credit and loans procedure Takes into account any future share price uplift More information will be provided in the next month Important that shareholders consider their MG loans when talking to banks Page 52

53 Status of discussions with the banks Banks are continuing to support the process Will lend against the shares (subject to individual credit assessments) List of contacts provided in Discussion Paper 4 ~$300m $Nil MG's $1 Banks valuation of MG's shares today Bank Valuation new structure Page 50

54 New Suppliers MG is encouraging new suppliers to join They will pay $1.24 per share if: join before the end of the SSO offer period (late May) commit to a supply agreement (1, 2 or 3 years depending on quantity of shares purchased) After SSO closes, new suppliers will pay market price for MG shares Page 51

55 Supplier Shareholding Statement Your personal situation Page 52

56 Share Standard calculation/methodology There are three levels of measurement (examples on next slide): Farm Production Standard Supplier Production Standard Share Standard (at the Shareholder level) Page 56 Page 53

57 Example 1: 1 Farm, 1 Supplier, 1 Shareholder (100% milk proceeds) Farm (Farm Production Standard) Supplier (Supplier Production Standard) Shareholder (Share Standard) KGMS 400, % Milk Proceeds Mr James Supplier standard 400,000 Mr James /01 300,000 shares Share standard 400,000 Individual Share Standard Shares Held Offtake Available to sell Available to buy at: $1 to $1.24 mkt price Mr James ( /01) 400, ,000 Mandatory Nil 100,000 ~1,200,000 * * To reach the 1.6m hard cap Page 54

58 Example 2: 1 Farm, 2 Suppliers, 2 different Shareholders Supplier 1 Shareholder (75/25 milk proceeds) Farm 75% Milk Proceeds Mr James Supplier standard 300,000 Mr James /01 300,000 shares Share standard 300, KGMS 400,000 25% Milk Proceeds Supplier 2 Sharefarmer X Supplier standard 100,000 Shareholder Sharefarmer X /01 50,000 shares Share standard 100,000 Page 55 Individual Share Standard Shares Offtake Available to sell Available to buy at: $1 to $1.24 market price Mr James ( /01) 300, ,000 Optional Nil Nil ~1,300,000* Sharefarmer X ( /01) 100,000 50,000 Mandatory Nil 50,000 ~1,500,000* Page 58 *. To reach the 1.6m hard cap

59 Key dates and next steps Page 59

60 Proposed capital structure timetable January 31 Share offtake suspended March Mid March Supplier/shareholder roadshows commence Late March New MG loans and credit policy mailed to MG shareholders April Mid April Notice of EGM mailed to shareholders Late April Final supplier information sessions commence (Victoria only) May 8 May Proposed EGM to undertake the vote on the proposed capital structure Early May Subject to EGM SSO offer opens Late May SSO offer closes June/July Early June Product Disclosure Statement for the unit trust offer and Prospectus for the Supplier Priority Offer lodged Early July MG unit trust lists on the Australian Securities Exchange (ASX) Page 60

61 Next steps Review your Shareholding statements Start engaging with your banks/advisors Notice of Meeting regarding EGM due in mail in mid-april Further information sessions to be held late April. Page 58

62 Questions Page 62